Government has raised the diesel price by a steep Rs 5 per litre and capped the number of subsidised cooking gas cylinder to six per household a year, decisions that will rake in an additional Rs 20,300 crore to the oil companies The government, however, left untouched the price of petrol and kerosene. Faced with the task of bringing down the ballooning oil subsidy, the governemnt for the first time introduced a cap on supply of LPG cylinders of 14.2 kg that will make the consumers pay market price for cylinders beyond six. The tough decisions, which came under immediate attack from allies like Trinamool Congress and Samajwadi Party and opposition alike, were taken at a meeting of the Cabinet Committee on Political Affairs (CCPA) chaired by Prime Minister Manmohan Singh.

West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee said, "We want rollback. I am shocked. The matter is very serious and sensitive; we can't compromise with the people's issue. We will discuss in our party meeting and our plan of action. We know the economic crisis we are with the government but enough is enough". Samajwadi Party, which provides external support to the UPA, said it wants an immediate rollback. "The decision is ill-timed and will hurt the common man," said Uttar Pradesh Chief Minister Akhilesh Yadav.